Indonesia`s Double Hedging Strategy toward the United States-China Competition: Shaping Regional Order in the Indo-Pacific?

Abstract

This study highlights Indonesia`s strategy in response to the growing competition between the United States and China. In recent years, Indonesia under the administration of President Joko Widodo has played a strategic role in maintaining regional stability in the Indo-Pacific amid inflaming tensions between the two countries. On the basis of an ＂independent and active＂ foreign policy with Association of Southeast Asian Nations (ASEAN) at the center of a concentric circle, Indonesia has employed a hedging strategy to bolster regional stability and foster cooperation among countries in the region. While there may be room for a hedging strategy, it is important to understand how Indonesia has employed this strategy to shape the regional order. This paper argues that Indonesia has adopted a double hedging strategy of economic pragmatism on the one hand and limited bandwagoning on the other. The former includes a deepening of economic cooperation with China through collaboration between Indonesia`s vision of a Global Maritime Fulcrum and China`s Belt and Road Initiative. The latter includes keeping the US involved in the Indo-Pacific by proposing its Indo-Pacific concept to regional players without challenging the existing proposals offered by major powers. This paper consists of four sections. The first section introduces the theoretical basis by focusing on Indonesia`s foreign policy ideas as it deals with competition between great powers. The second section discusses the synthesis of Indonesia`s vision of a Global Maritime Fulcrum and concept of the Indo-Pacific. The third section demonstrates how Indonesia has employed its double hedging strategy. The fourth section highlights the conclusions of this study by summarizing Indonesia`s response to competition between the US and China and providing recommendations for further research.